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AXA Belgium - Retail & industrial portfolio valuation

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The Challenge

As a first-time assignment, AXA Belgium contacted our Brussels office for the appraisal of their Belgian retail and industrial portfolio. This portfolio represents a total of 290.000 sq.m split over 24 properties, of which three shopping centers and one of the biggest retail parks in Belgium (40.000 sq.m). The assignment began in March 2011, and the final report was due in August 2011. Three different valuation methods were to be used (Capitalization of Estimated Market Rent, a Discounted Cash Flow approach and Price per sq.m based on comparables). The challenge was then to tackle a large-scope assignment for an important and well-known client, and to deliver high quality valuation services in short delays.

The Solution

Due to the sharp timing and total workload, a detailed planning was put in place. One part of the team started to visit all the properties and assessed them based on specially prepared checklists. Each inspection has been carried out thoroughly and meticulously. The other part of the team started to develop tailor-made templates and calculation sheets in order to address the needs of AXA Belgium. Finally, we corroborated our calculations and analysis with our in house market knowledge and expertise as leading Belgian Letting and Capital Markets Agent.

The Results

In the summer of 2011, the deadline was met and the report was submitted. AXA Belgium proved to be very satisfied with the results of our efforts. Furthermore, despite some differences with the previous appraisal of the same portfolio done by a competitor, our discussions and explanations convinced them that we had a sound, rigorous and in-line-with-the-market and with RICS guidelines approach. This resulted in other requests of second opinions over out-of-scope properties.